APA Corporation (APA)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,599,000 | 5,620,000 | 2,888,000 | -4,102,000 | -2,152,000 |
| Total assets | US$ in thousands | 16,944,000 | 14,255,000 | 14,393,000 | 12,746,000 | 18,107,000 |
| Operating ROA | 21.24% | 39.42% | 20.07% | -32.18% | -11.88% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,599,000K ÷ $16,944,000K
= 21.24%
Operating ROA measures how effectively a company generates operating profits from its assets. APA Corporation's operating ROA has fluctuated over the past five years. In 2023, it stood at 22.89%, showing a notable decrease from the previous year's 38.91%. However, the company's performance in 2023 was still higher than in 2021 and significantly better than in 2020 when it reported a negative operating ROA of -0.39%. The positive trend seen from 2019 to 2022 indicates improved efficiency in utilizing assets to generate operating income. It is important for APA Corporation to monitor and potentially improve its operating ROA to ensure sustained profitability and asset utilization efficiency.
Peer comparison
Dec 31, 2023